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प्रश्न
How does the nature of a good affect its elasticity of demand?
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उत्तर
Elasticity of demand of a good is influenced by its nature in the following ways:
- When a commodity is a necessity, its demand is generally inelastic (Ed < 1) → food grains, salt, school uniforms, etc.
- When a commodity is a comfort, its demand is generally unit elastic (Ed = 1) → cooler, TV, mobile phone, etc.
- When a commodity is a luxury, its demand is generally elastic (Ed > 1) → car, home theatre, air conditioner, etc.
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संबंधित प्रश्न
Explain the effect of the following on the price elasticity of demand of a commodity:
(i) Number of substitutes
(ii) Nature of the commodity
Write Short note on the following.
Ratio method of measuring price elasticity of demand ?
Define or explain the following concepts (Any THREE):
Stock
Choose the correct answer :
Demand of labour is _______
State whether demand will be Elastic or Inelastic. Give reasons for your answer.
The demand for salt by households.
When the price elasticity of demand for a good equals ______.
The nature of a commodity determines its price elasticity of demand. Explain.
What type of demand characterizes necessity goods compared to luxury goods?
How does the time period affect the elasticity of demand?
Which statement correctly describes the relationship between postponement and price elasticity?
